LEI (Legal Entity Identifier)

A unique identification system for the transparency of financial markets

LEI (LEGAL ENTITY IDENTIFIER)

WHAT IS LEI?

The Legal Entity Identifier (LEI) is a unique code made up of 20 alphanumeric characters based on the ISO 17442 international standard issued to identify the parties to financial transactions in all world markets and legal jurisdictions.

WHY IS LEI USED?

The creation of a global and uniform system for identifying legal persons participating in financial markets will greatly contribute to the management of global risks. For legal entities, the attribution of a unique international identifier simplify regulatory reporting and increase the efficiency of internal procedures.

WHICH BODIES ARE REGULATING THE INITIATIVE?

The Financial Stability Board (FSB), based in Basel, is an international body set up with the task of monitoring the world financial system, in order to improve its components and reduce the risk of financial crisis by sharing information.

The FSB was tasked by G20 leaders to coordinate the activities to establish a global identification system for legal entities. The system which issues LEI codes is overseen by the Regulatory Oversight Committee (ROC) which is made up of members of the FSB and other public institutions. The implementation of the global system is controlled by the Central Operating Unit (COU), which guarantees the use of uniform, global standards. The COU is currently being created, and it will be managed by the Global Legal Entity Foundation (GLEIF), a non-profit foundation specifically set up in 2014 with responsibility over system operations. The different Local Operating Units (LOU), through their knowledge of the national legal frameworks, are at this time responsible for the issuing of LEI codes.

InfoCamere, the Italian Chambers of Commerce information technology consortium, is one of the 30 worldwide organizations officially authorized by GLEIF to operate as LOU (Local Operating Unit), that is as an issuer of LEI codes, release service and IT management.